Sergio Rossi, the Italian iconic maker of luxury shoes, is to be bought by Italy’s private equity firm Investindustrial. The deal includes all the industrial assets of Sergio Rossi, the rights attached to the brand and the entire distribution network, which counted for 82 million euros in revenues in 2014 (download here the press release).
Investindustrial’s funds already own some renowned luxury and design brands such as Aston Martin, Flos and B&B Italia. he private equity firm has been in advanced talks with the seller Kering, the French luxury giant, since the end of last Summer, while at the end of July the favourite bidder was said to be instead Emerisque fund (see here a previous post by BeBeez).
Investindustrial, led by Andrea Bonomi, will invest about 100 million euros in the deal, including a capital increase which is needed for relaunching the business and finance a new growth. The company has been valued about 70-80 million euros. Sergio Rossi’s revenues have been dropping year after year since 2004 when it reached 99 million euros in sales. In 2013 revenues were 92 million euros and in 2014 dropped to 82 millions together with a drop in ebitda. Actually Kering put Sergio Rossi brand among assets ready for sale in the 2014 accounts (see here Kering’s FY 2014 statements) after having made a 52 million euro write-off of the brand. In the first half of 2015 Kering recorded 11 million euros in losses from assets ready for sale, the majority of which coming from Sergio Rossi (download here Kering’s First-Half Report).
Sergio Rossi is one of the most famous Italian luxury footwear brands, long known for its high quality production of shoes. The company has built its credibility on its unique craftsmanship and on the creativity that characterizes its designs. Sergio Rossi has a significant international presence in EMEA, America, South East Asia and Japan with over 80 stores (a mix of directly operated stores and franchised stores).
Founded by Sergio Rossi in 1966, the company is now 100% controlled by Kering after Gucci group (now owned by Kering) had bought a 70% stake in 1999 and the remaining 30% stake in 2005.
Advisors to Kering for the deal were Accuracy and Bonelli Erede law firm, while Investindustrial has been supported by financial advisors Lazard and PwC and by Chiomenti law firm.